I recently received a message from Dave Hollist on my facebook page which read, “Darryl, thanks for running for office. On your page and website, I could not find your plan to finance government without violating our Libertarian pledge to never force anyone to do anything. Please steer me to that info, or have you considered contract insurance?” He then asked, “How can a government operate without taxation?” and provided his answer, which can be found on his website.

Before offering my opinion on how government would be funded absent taxation, I feel compelled to say that I have only seen a handful of people mention “contract insurance” and based on what I’ve read, I would not oppose such a proposal, nor would I support it.

Now, to answer the question: How can a government operate without taxation? I believe that governments (if they are to continue existing) can operate without taxation in a similar way that your neighborhood grocer operates without taxation. Any proposed government project should be able to be funded through voluntary means. Just as your local grocer doesn’t point (or threaten to point) a gun to your head to force you to purchase his groceries; governments should not use the same tactics to force you to fund its schools, roads, post offices, bureaucrats, regulatory agencies, military conquests, and/or any other government function.

This does not mean that I oppose schools, roads, and post offices. In fact, I like all three of those things, and regularly use two of them. I’m opposed to the use of force to fund them. I’ve been a regular contributor to the arts and libraries, however I’m opposed to the use of force to fund them!

I admit that I do not have all of the answers, though I do offer solutions. My solution to operating a government without taxation is to have said government (if such would even exist in a libertarian society) rely on voluntary contributions, just as privately run businesses and charities do!

4 Responses to Funding Government Without Taxation

Would you say government should be supported, based on fees? They are voluntary in the sense that one has the choice of purchasing the government service for a fee. Calling government funding “voluntary” seems to leave funding entirely arbitrary and might be considered undependable. However, a fee based government would charge the fees necessary to deliver the desired services, just as the grocer.

However, even under a fee based government, funding for the legislation branch and judges raises a question of how to fund those parts of the government. Are you suggesting it be voluntary? Would that not create a government subservient to the aristocracy? Which is largely the problem we have today.

You mention public schools quite a bit. If they are fee based, as you might suggest, would they not simply become private schools? What would be the difference between public schools and private schools?

“Would that not create a government subservient to the aristocracy? Which is largely the problem we have today.”
In a voluntary society, businesses would not be given government subsidies. This would actually reduce the “power” that big businesses would have.

“If they are fee based, as you might suggest, would they not simply become private schools?”
Yes, they would become privately operated schools; there would be nothing prohibiting them from offering free tuition to students. There are many parks that are open to the public, but which are privately funded. I see no reason some schools wouldn’t operate in a similar manner.